WASHINGTON — The United States and Russia have agreed to a temporary arrangement allowing 3.8 million metric tons of Russian diesel to enter global markets by December 2026, in an effort to stabilize record-high fuel prices ahead of the US midterm elections. The deal was announced by US President Donald Trump on October 9, 2026, following a phone call with Russian President Vladimir Putin.
US Treasury issues sanctions waiver
The US Treasury Department issued a temporary general license on October 9, permitting the import of Russian diesel into the US and global markets until April 7, 2027. The license follows weeks of elevated diesel prices in the US, which reached an average of $6.28 per gallon on October 9, according to AAA data. Diesel is critical for agriculture, transportation, and home heating, making its cost a key economic concern for voters.
Agreement details and timeline
Under the agreement, Russia will supply:
- Over 300,000 metric tons immediately
- 500,000 metric tons in November 2026
- 1 million metric tons in December 2026
- An additional 3 million metric tons in early 2027, contingent on the condition of Russian refineries, which have been damaged by recent conflicts.
Trump stated on Truth Social that the agreement, combined with US control of the Strait of Hormuz, would lead to a rapid decline in diesel prices for Americans and global markets. The White House has not specified who will purchase the diesel or the financial terms of the deal.
Reactions and political context
The announcement comes weeks before the US midterm elections, where economic concerns, particularly inflation and fuel prices, are a top voter priority. Ukrainian President Volodymyr Zelenskyy criticized the deal, stating in a released statement that "gifts to Putin will not bring peace or any benefit to the civilized world." Zelenskyy added that Russia would "repay the diesel with further terror and perfidy."
Putin’s office released a statement following the call, asserting that the agreement would have a "positive impact on the entire global economy" and that the leaders discussed broader issues, including the Ukraine crisis and Iran. The statement also noted plans to maintain personal contact and cooperate on intelligence services.
Policy reversal and sanctions background
The deal marks a reversal of US policy, as Trump signed a sweeping Russia sanctions law in September 2026 aimed at reducing Russia’s energy revenues to fund its war in Ukraine. The new arrangement temporarily waives sanctions on Russia’s energy sector to facilitate the diesel supply. Critics, including Sen. Richard Blumenthal (D-CT), have argued that the move undermines the sanctions regime and could be seen as complicit in funding Russia’s war efforts.
Market and expert reactions
Energy analysts have expressed skepticism about the deal’s ability to significantly lower prices. Patrick de Haan, a fuel expert at Gas Buddy, questioned whether the supply would be sufficient to offset market pressures. The deal also follows reports that Trump had previously urged Ukraine to halt attacks on Russian refineries, which have contributed to global fuel shortages.
The arrangement has drawn mixed reactions, with supporters highlighting its potential to ease economic burdens on American households and industries, while opponents argue it weakens US leverage in the Ukraine conflict and sends mixed signals on sanctions enforcement.